U.S. Lease Policies and Guidelines
U.S. Lease Policies and Guidelines
Effective Feb. 1, 2018
Lease program administration and credit decisions are based on multiple factors and remain the sole discretion of GM Financial (GMF).
?2018 General Motors Financial Company, Inc. GM Financial and the GM logo are trademarks of General Motors LLC, used with permission.
Updates as of Feb. 1, 2018
1. Updated tiers which require security deposit
See page 2 for details.
2. Updated vehicle advance
See page 5 for details.
3. Added guidance on how tier is determined for joint applicants
See page 8 for details.
4. Updated funding requirements
See page 9 for details.
5. 5. Updated amount due at lease signing section
See page 9 for details.
U.S. Lease Policies and Guidelines
1
Disclaimer: The information contained in the U.S. Lease Policies and Guidelines applies to both new and CPO/FPOC leases unless otherwise specified.
Eligible Dealers
Authorized dealers who have executed a GM Financial full-spectrum dealer agreement are eligible.
Fees*, Dealer Markup and Waivers
*State-specific maximum allowed fee restrictions may apply.
? Acquisition Fee - $650 where allowed by law (Acquisition Fee markup not allowed).
? Acquisition Fee Waiver (Optional) - $650 customer Acquisition Fee may be waived by increasing the money factor 75 factor points (where allowed by law).
Money factor rate + .00075 Example: .00400 + .00075 = .00475
? Dealer Participation
{{ Flat Fee - $200 for GMF floorplan dealers or $100 for non-GMF floorplan dealers or {{ Markup (Difference Method) ? Increase money factor up to 100
factor points or 2.4% APR. Dealer receives the following: ?? GMF floorplan dealer receives 90% ?? Non-GMF floorplan dealer receives 70% with no chargebacks where allowed by law. (Acquisition Fee markup not allowed.) ? Early Termination Fee - $0
? Disposition Fee - Chevrolet: $395, Buick GMC: $495, Cadillac: $595 (Returning GMF lessees with a disposition fee qualify for a fee waiver when purchasing or leasing a new GM vehicle. Please call Customer Service with the new VIN or complete the Fee Waiver Form to receive the waiver.) See Exhibit B on page 17 for state exceptions.
? Purchase Option Fee - $0 (Returning GMF lessees with a purchase option fee qualify for a fee waiver when trading for a new GM vehicle. Please call Customer Service with the new VIN or complete the Fee Waiver Form to receive the waiver.)
? Security Deposit (Only required for tiers B2 and B3, where allowed by law)
{{ Amount is equal to the monthly lease payment rounded up to the nearest $25 increment. For single payment lease, the security deposit is calculated by dividing the single payment amount by the term and rounding up to the nearest $25 increment.
{{ Security deposit is not required with purchase of GMF XS Wear?, available on new vehicles only. Third-party excess wear-and-use policies do not qualify for security deposit waiver, but are accepted.
? Dealer-Approved Finance Options (soft adds) ? Lease agreements will be eligible for extended service contracts, warranty products, excess wear-and-use protection, tire and wheel, dent and ding, Volt and Bolt EV Approved Accessory - AV 32 Amp - 25ft Cable (GM part # 19355504), etc., where allowed by law.
{{ GMF XS Wear? is available on new vehicles only (not eligible on CPO/FPOC leases). {{ Maximum VSC $4,000 -- cannot exceed Max Advance by tier.
U.S. Lease Policies and Guidelines
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Single Payment Lease
? Pricing adjustments may be required for single payment lease. Single payment adjustment is done prior to any additional MF adjustments. Rates may not be reduced below .00001 MF or .02% APR. See rate sheet for details.
? Amounts other than the agreed upon value of the vehicle cannot be capitalized and must be disclosed in the Amount Due at Lease Signing or Delivery section of the lease agreement. This includes, but is not limited to, aftermarket products, taxes, fees and negative trade equity. Lease cash and rebates must be used as cap cost reduction. Cash may not be applied as a cap cost reduction. Cap cost reductions cannot create a zero or negative depreciation value and may be limited by GM Financial.
Advance Allowance (soft adds)
? GAP coverage included on all leases. Aftermarket GAP is not allowed in any state.
? Service Contracts (VSC, tire and wheel, dent and ding, etc.)
{{ Maximum VSC $4,000 -- cannot exceed Max Advance by tier. ? Excess wear-and-use protection: max retail price of $1,500 on all excess wear-and-use products.
{{ GMF XS Wear is not eligible on CPO/FPOC leases.
? Credit Life Insurance / A&H.
? Volt and Bolt EV Approved Accessory - AV 32 Amp - 25ft Cable (GM part # 19355504.)
Sales Tax
? Sales tax for the lessee is based on where the vehicle will be garaged. GMF does not collect or pay tax for capitalized cost reductions since the dealer, not GMF, is the initial lessor (LA and KY are exceptions). GMF has posted a lease tax guide on GM GlobalConnect and GMF Connect to assist with general questions relating to the collection of tax on leases. Contact your tax professional for state-specific guidance.
U.S. Lease Policies and Guidelines
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Mileage Parameters and Adjustments
New Lease
? Maximum Allowable Mileage at Inception ? 7,500 miles on eligible models at inception. Vehicles with mileage between 1,001-7,500 require an initial mileage retroactive adjustment of $0.20 per mile, or the inception mileage must be deducted from the total contract mileage and accurately disclosed on the lease agreement. ((Total Contract Mileage ? Inception Mileage) / (Term / 12)) = Annual Allowable Mileage
? Standard Mileage ? 15,000 miles per year on all terms
? Maximum Allowable Annual Mileage ? 25,000 miles per year
? Low-Mileage Adjustment ? Ultralow mileage leases only available for FICO? scores of 620 or greater. For joint applications, both applicants must meet the 620 minimum FICO score requirement. Qualifying bureau score is determined by GM Financial.
{{ For low-mileage leases (12,000 miles per year), add 1 point to the GMF published residual for terms less than 36 months, add 2 points to the GMF published residual for 36- to 47month terms and add 3 points to the GMF published residual for a 48-month term.
{{ For ultralow mileage leases (10,000 miles per year), add 2 points to the GMF published residual for terms less than 36 months, add 3 points to the GMF published residual for 36- to 47-month terms and add 4 points to the GMF published residual for a 48-month term. (Only available for FICO scores of 620 or greater as determined by GM Financial.)
? Upfront Mileage Adjustment ? $0.20 per mile. Low-mileage and ultralow mileage leases (12,000 per year or less) cannot be adjusted for upfront mileage.
? Excess Mileage Fee ? $0.25 per mile
CPO/FPOC Lease
? Standard inception mileage ? Vehicles with mileage at or below standard inception mileage are not subject to residual adjustment (see table below). Vehicles with mileage exceeding standard inception mileage require one of the following:
{{ An initial mileage retroactive adjustment of $0.20 per mile back to standard inception mileage.
{{ Miles over standard inception mileage must be deducted from the total contract mileage and accurately disclosed on the lease agreement ((Total Contract Mileage ? Miles Over Standard Inception Mileage) ? (Term ? 12)) = Annual Allowable Mileage.
? Maximum allowable inception mileage ? Varies by model year; see term/mileage parameter table.
Vehicle Model Year
2017 2016 2015
Standard Inception Mileage
20,000 35,000 50,000
Max Allowable Inception Mileage
30,000 45,000 60,000
Eligible Lease Terms
36 to 48 Months 36 to 48 Months
36 Months
? Low-Mileage Adjustment ? CPO/FPOC leases are not eligible for the low-mileage program or the ultralow mileage program.
? Upfront Mileage Adjustment ? $0.20 per mile ? Excess Mileage Fee ? $0.25 per mile
Note: See program sheets for participation availability and manufacturer program limitations.
U.S. Lease Policies and Guidelines
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